When did the minimum wage become $7.25? Over a decade ago, in 2009. But the recent push has been to raise the federal minimum wage to $15 an hour: Even President Biden considered making it happen. While the $15 minimum wage isn’t yet a reality for everyone, he was at least able to secure this increase for federal contractors. The organizers of the Oct. 15, 2021, general strike blew past the $15 goalpost and tried to make $20 an hour happen. Is this a crazy idea, or is $15 no longer enough?
Inflation could mean higher wages
Inflation is obvious all around us. From supermarket price hikes to outrageous Uber charges, goods and services are getting more expensive everywhere we turn. So, does that mean we’ve gone past the need for a $15 minimum wage straight to $20? Well, PNC Bank raised their minimum wage to $18 an hour, so a precedent could be coming sooner than we think. Rent moratoriums are over, people are losing unemployment benefits, and student loans are back in the mix. Companies will need to keep their wages competitive to attract all of the workers entering the market.
Cost of living
Still, the cost of living isn’t the same across the country. That’s why many states have taken the initiative to raise their own minimum wage as the federal government has remained stagnant. But in areas where housing isn’t as expensive, wages probably don’t need to rise as often or as much. In Mississippi, a dollar can get you a lot farther than in California. Not to mention, small businesses must be taken into account as $20 or even $15 an hour may be too much to handle for owners in some areas.
Free market vs. federal mandates
Even though the federal minimum wage hasn’t gone up in over a decade, most people get paid significantly more than $7.25 an hour. That’s because where the government has failed to keep up with the times, corporations have been steadily raising wages to stay competitive. So, the question then becomes, is a strike necessary to get this rule on the books, or should we rely on the free market?